4-Hour Analysis:
Big Picture: BTC has lost the channel and is currently falling sharply from the converging triangle’s breakdown. The overall pattern aim is likely between the liquidity zones at 37,580-37,000, but such a strong move on the opening day of the week raises doubts about the situation. As a result, a strong rejection of the 39,650-39,890 level is required for confirmation; else, this could be a false move. However, stronghold above 40,550 is essential to counter this bearish sentiment, as doing so would block the fall and channel a counter-move towards 42k.
On the Upside, Between 39,650 and 39,890, a very strong resistance is expected to be observed. This is where the prior structure supply break is currently resting. As a result, this is the day’s initial resistance. Moving forward, the next level of resistance can be found at the 40,550 mark. For a move higher, this level must be recaptured and held. If this level is breached, the initial upside target is anticipated to be 41,500, followed by 42,100, and finally 43,900.
On the Downside initial support level is 38,550. This level has effectively halted the decline and is currently holding. However, if this level is breached, the market would fall further, initially towards 37,950, then towards the key liquidity levels of 37,580 and 37,000.
